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For more than 30 years, Cabling Installation & Maintenance has provided useful, practical information to professionals responsible for the specification, design, installation and management of structured cabling systems serving enterprise, data center and other environments. These professionals are challenged to stay informed of constantly evolving standards, system-design and installation approaches, product and system capabilities, technologies, as well as applications that rely on high-performance structured cabling systems. Our editors synthesize these complex issues into multiple information products. This portfolio of information products provides concrete detail that improves the efficiency of day-to-day operations, and equips cabling professionals with the perspective that enables strategic planning for networks’ optimum long-term performance.

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FICO Solutions Help Bank Mandiri Slash Fraud by 80% on Cards and 85% on Digital App as Digital Channels Boom

Indonesia’s largest financial institution dramatically reduces fraud losses on its Livin’ by Mandiri banking super app, safeguarding over 1.64 billion transactions

FICO (NYSE: FICO)

Highlights:

  • Bank Mandiri is using FICO® Falcon® Fraud Manager and the FICO® Falcon® Intelligence Network to prevent fraudulent activities
  • The bank experienced an 80% decrease in card payment losses, 85% on Digital App
  • Bank Mandiri rapidly integrated and secured 13 new banking channels with FICO
  • Bank Mandiri has won a 2024 FICO® Decisions Award for Fraud Management

Bank Mandiri, Indonesia’s largest financial institution, is using the industry-leading capabilities of FICO® Falcon® Fraud Manager and the FICO® Falcon® Intelligence Network to safeguard all transactions across its retail channels, including booming digital platforms in a continuously evolving fraud landscape.

In 2022, FICO’s fraud solutions safeguarded over 1.64 billion financial transactions valued at US$156 billion on Bank Mandiri’s Livin’ mobile banking app, amidst a staggering 50% year-over-year growth. As a result, fraud losses on the app decreased by 85% from January to August 2023 compared to the previous year. Across credit and debit cards, fraud losses fell by 77% in 2022.

More information: https://www.fico.com/en/latest-thinking/case-study/case-study-bank-mandiri-and-fico-fight-fraud

“The boom in ecommerce and digital banking services in Indonesia post-pandemic, coupled with the expanding economy, has been remarkable,” said Adityo Wicaksono, Senior Vice President Retail Product Delivery & Fraud Risk Group, Bank Mandiri. “Maintaining customer trust and experience through a comprehensive digital transformation strategy is imperative for us. FICO’s solutions help us to stay ahead of fraudulent actors, so we can focus on delivering exceptional digital banking services for our customers.”

Watch Bank Mandiri tell their story on video

Fighting Changing Threats

When Bank Mandiri implemented Falcon Fraud Manager, it did not just benefit from FICO’s expertise, technology platform, and fraud models. It also leveraged FICO’s global fraud data consortium, the FICO Falcon Intelligence Network.

The Falcon Intelligence Network is a unique consortium at the core of FICO’s ability to innovate. More than 10,000 financial institutions worldwide provide anonymized, tagged data for monetary and non-monetary transactions, which FICO then uses to train and improve powerful fraud-fighting AI and machine learning-powered models.

“The consortium data allows us to stay ahead of emerging fraud trends,” said Wicaksono. “After the implementation of fraud models and intelligence derived from the consortium, we were able to achieve immediate, impressive reductions in credit and debit card fraud effectively without having to design new fraud models from scratch. We are now ourselves a contributor to the consortium.”

Scale Without Sacrificing Agility

Bank Mandiri’s digital transformation drive in 2023 saw the creation of over 30 new mobile banking features, including Paylater and the New Branch Delivery System (NBDS), enhancing customer experiences with Livin’ by Mandiri. Partnering with FICO enabled seamless integration of these innovations into its fraud protection solutions, demonstrating FICO's agility and scalability.

“The rapid integration of existing and new channels along with the hundred newly integrated features demonstrate that FICO's solution can meet the challenge of simplifying the integration process within Bank Mandiri's complex system architecture and high volume of transactions," added Wicaksono.

Battle Against Scams

Bank Mandiri and FICO are currently collaborating on fighting the escalating threat of scams. With the rise of Authorized Push Payment (APP) fraud both globally and in Indonesia, there's an urgent need for robust fraud prevention measures.

"We are encouraged by the results we're witnessing, mirroring the success seen by FICO's other clients,” concluded Wicaksono. “FICO’s scam detection model, combined with targeted profiling and the retail banking payments model, has proven highly effective. This approach has enabled Mandiri to detect a significantly higher number of scam transactions, all while maintaining a sub-1% transaction review rate."

“Fighting financial fraud while also driving groundbreaking digital innovation and growth is no small feat,” said Nikhil Behl, EVP of software at FICO. “Bank Mandiri's commitment to fraud management and customer experience cements its leadership in digital banking.”

For its achievements, Bank Mandiri won a 2024 FICO® Decisions Award for Fraud Management.

“Mandiri impressed the judges with its belief in a data-driven ethos, using advanced analytics and insights to optimize fraud detection and underpin its digital progress and ambitions,” said Paul Mah, senior editor, CDO Trends and one of the FICO Decisions Awards judges.

To see the full list of 2024 FICO Decisions Awards winners, check out: https://www.fico.com/en/decisionsawards

Learn more at www.fico.com.

FICO and Falcon are registered trademarks of Fair Isaac Corporation in the US and other countries.

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